Macro investment strategist Lyn Alden says Bitcoin (BTC) has several key advantages over shares of growth and tech companies.
In a Palisades Gold Radio interview, a Youtube channel focused on mining and energy, Alden notes that tech stocks are “not rapidly innovating anymore” and have already reached a dominant market share. They’ll likely transform into value stocks that command a premium price, according to the analyst.
Growth stocks have become extremely highly valued when compared to revenues and earnings, Alden argues.
Importantly, stocks are also not scarce, the analyst notes.
“If they’re highly valued, the CEO can issue more shares of that company to raise capital and try to grow faster… You’re putting a monetary premium on something that is not scarce. Shares of a company are not scarce.”
Bitcoin, by contrast, has a finite supply.
Explains Alden,
“Bitcoin can get larger than any individual company because it’s not tied to earnings or revenue, it’s basically being measured as its usefulness as money, and essentially all monies are just kind of ledgers that we have a reason to believe are secure.
When we’re looking out at Bitcoin’s adoption, I think it’s earlier on its adoption curve than many of the large tech stocks today and its total number that exists cannot adjust to demand. There’s no CEO of Bitcoin that can say ‘Wow, there’s so much interest in Bitcoin. Let’s go ahead and make another five million Bitcoin to satisfy all this demand for this stock.”
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